(1) The driver of any vehicle approaching a stop sign at the entrance to, or within an intersection shall stop. The driver shall then yield the right-of-way to any vehicles which have approached from another highway, or which are approaching so closely as to constitute an immediate hazard, and shall continue to yield the right-of-way to those vehicles until he or she can proceed with reasonable safety.

(2) A driver having yielded as prescribed in subsection (1) of this section may proceed to enter the intersection, and the drivers of all other approaching vehicles shall yield the right-of-way to the vehicle entering or crossing the intersection.

(3) This section does not apply where stop signs are erected upon all approaches to an intersection.