Final answer:
If you encounter a school bus displaying flashing yellow lights, you should slow down and prepare to stop as this indicates the bus is preparing to load or unload children. Full stopping is required when the bus displays flashing red lights and extends its stop sign.
Step-by-step explanation:
If you pass a school bus which is displaying flashing yellow lights, you should be prepared to slow down and proceed with caution. The yellow lights signify that the bus is preparing to stop to load or unload children. However, the correct action can vary by jurisdiction.
Typically, you would not stop completely unless the bus has its red lights flashing and stop sign extended. At this time, you must stop and remain stationary until the red lights stop flashing and the stop sign is withdrawn. It is crucial for the safety of the children and adherence to traffic laws to pay close attention to school buses and their signals.