Oh, I love drug dealers. There's this one really nice guy who gives me this white powder all the time. It tickles my nose!
Anyway, the best way to deal with bullies is to outsmart them. Standing up to them and/or ignoring them sometimes works, but being one step ahead of them is better. For example, get everyone to turn against the bully. Publicly embarrass him/her. Win a fight against the bully (**** the police). As a last resort, tell a teacher. Usually, bullies don't have popular support, and travel in flocks.